Gold Mine Owner Sues AIG For $8M

Law360, New York (January 23, 2007, 12:00 AM EST) -- Gold mining and exploration company Queenstake Resources Ltd. has sued a subsidiary of AIG for failing to reimburse it for the cost of an evaporation pond at its most profitable mine.

According to the complaint, which was filed Friday in the U.S. District Court in Denver, AIG subsidiary American International Specialty Lines Insurance Co. breached a contract, negotiated in bad faith and engaged in unfair claims practices.

“AISLIC intentionally has handled Queenstake’s bonding matters and insurance claims with the goal of financially benefiting itself at the...